Answer the Following Questions Using the Information Below

question 115

Multiple Choice

Answer the following questions using the information below:
The following information is for Nichols Company:

-If targeted operating income is $40,000, then targeted sales revenue is:

• A)$350,000
• B)$233,333
• C)$166,667
• D)$250,000

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Definitions:

Semi-annual dividend

A payment made to shareholders from a company's earnings, distributed twice a year.

Perpetual preferred share

A type of preferred stock that has no fixed maturity date, often providing dividends indefinitely.

Compounded semi-annually

The method of computing interest by taking into account both the original amount of money deposited or lent and the interest that has been earned on that amount from past periods, with the calculation occurring semi-annually.

Perpetuity

A financial instrument that provides endless payments of a fixed amount of money, often used to model the value of stable companies.